JPMorgan says Bitcoin mining profitability rose again in December

JPMorgan Chase (JPM) says Bitcoin (BTC) miners’ revenues and total profits rose for the second straight month in December.

According to the largest US bank, Bitcoin mining profitability has now reached its highest level since April 2024 when the recent halving event reduced the available supply of Bitcoin by 50%.

Mining profitability is increasing as the prolonged rally in the world’s largest cryptocurrency by market capitalization continues to outpace network hashrate growth, JPMorgan Chase says.

JPMorgan estimates that Bitcoin miners earned an average of $57,100 in reward revenue during December, 10% more than in November.

However, total profits for Bitcoin miners are still 43% to 52% below pre-halving levels, JPMorgan Chase noted in its latest report on the cryptocurrency mining sector.

The network hash rate increased by 6% in December. Hash rate refers to the total combined computational power used to mine and process Bitcoin transactions on the blockchain.

Mining difficulty rose 7% from the previous month and is now 27% higher than before the halving event last April.

Additionally, JPMorgan said the market capitalization of the 14 publicly listed bitcoin mining companies it tracks fell 23% to US$28 billion in December.

Bitcoin has risen nearly 130% over the past 12 months and is currently trading at $100,750 per digital coin.